SBA HUBZone “Legacy Employee” Grace Period Ends: 3 Changes Affecting Recertification in 2022

PilieroMazza – As part of sweeping changes to the HUBZone rules in the 2019 Final Rule, SBA implemented the so-called HUBZone “legacy employee” rule.  This new rule was welcomed by HUBZone firms because it permits them to continue counting an employee as a HUBZone employee even after the employee moves out of a HUBZone, as long as certain requirements are satisfied.  Specifically, to qualify as a HUBZone legacy employee, the rule requires that an employee (i) reside in a HUBZone for at least 180 days prior to the firm’s certification or recertification; (ii) continue to live in a HUBZone for at least 180 days immediately after the certification or recertification; and (iii) maintain continuous employment with the firm.